hour. a compromise is forming quickly. some say the president needs to back off to help get out republicans on board. fox business, the only business network to bring you the arrest of the michael steinberg. shakespeare, not in love with taxes, apparently. we want those stories and much more straight ahead on "market now." ♪ speaker dagen has the day off. good morning, everyone.

a lot of people are talking. a lot of people who watch financial markets. we will have a couple different perspectives on mr. stockman. >> this market is and dies by the last word of the fed and the people at the fed had no idea what they are doing. bernanke is the most dangerous man to hold financial office in the history of the united states. stuart: some strong words. let's go to nicole petallides. nicole: good morning. we are kicking off a new quarter. we kicked it off in a stellar fashion. today is the first trading day

of the new month. the dow is down a quarter of a 1%. as far as what we are seeing on the big board, we are seeing the dollar pulled back. down arrows after we got solid economic news. connell: thank you. let's talk more about the comments from david stockman. the idea of a market crash that could be coming. michael thompson is here with the in studio. thank you for coming in. good to see you. this is not some great man, this

is a guy with a long history. an advisor to ronald reagan. on and on. >> i think they are great. first of all, it gets a good conversation going. we are living in the greatest fixed income bubble in history has ever known. connell: a bubble in the bond market. >> we do not know the end of this story. how did they let the air out and be able to reuse that? connell: is there any way to manage this in a reasonable fashion? now that we are in this deep, yields have stayed low for so long, is there any way to avoid the bursting of the bubble?

>> history shows that bubbles tend to burst. we have a very canny federal reserve chairman. obviously, we have a new playbook that has never been evidenced. nobody has any experience with what will happen next. people have to relax a little bit. it is fundamentally evidence of a bubble. what i think people need to realize is we live, capital markets are about revolving bubbles. they move from asset class to asset class. right now you have the biggest bubble in fixed income.

equities and real estate will become bubbles. the money will start flowing out. the argument is that you pick your poison. what the markets have done for centuries is move from one asset class to a enough. we have seen commodities run to crazy highs. he has the pressured downward. connell: you said people need to reflect. all this doomsday talk that we have had, why should we be so relaxed? >> there is great opportunity. >> clearly we have had a great run. we are only back up to where we were in 2007.

from a various degree of measures, the stock market is really about trying to value future expectations. things are painfully slow in getting better. connell: we will leave it there for now. good to have you. the chamber of commerce calling a deal reached. let's check in with peter barnes peter: this breakthrough came at a compromise this weekend. labor unions do not want easy visas for temporary workers. they want to protect jobs and

wages, of course. in negotiations between that afl, cio and u.s. chamber of commerce, they settled on phasing in more visas. the chamber is saying "this is a structure we can move forward with." this deal does allow a bipartisan group of eight senators to move forward with completing a bill that will provide a path to citizenship for nations 11 million illegal aliens. >> we all agreed that we will not come to a final agreement until we see draft language and agree on that. the rest of it will be drafted this week. peter: conservative marco rubio

of florida said "i am encouraged." he reports that the group has agreed on a legislative proposal that is premature. connell: peter barnes and d.c. with us. matt welsh is here in studio now. you have been betting against this. >> the good news is we are getting closer to the deal and the bad news is we are getting closer to the deal. there has to be comprehension. we have to fix everything at once. connell: if you were going piece by piece, you could get some portions. >> when you have created 11 million lawbreakers, it may be time to look at the law. the compromise this weekend is

significantly important. expand legal immigration and the leg -- deregulate. what you are doing is, you are creating all of these red lines for people to reject it. connell: what about from a pure political standpoint. when did it make sense for republicans to cut a deal? >> yes. you could make an argument that republicans are more motivated than democrats.

>> i take his word that he wants to get it done. there is pressure on his left flank for sure. it is more useful to democrats. if the republicans get it done, you still do not think it will happen. >> it is really difficult. if there is a large group of people that say you have to secure the border up of peeple want to see something to convince them of that, it is not clear it will happen. the pathway to citizenship is an important idea. if they think people here have jumped the line, then that could

be a dealbreaker for those people also. connell: always wait to see you. thank you. twitter taking advantage of april fools day. or at least trying to. you could get it for five dollars a month. twitter only allowing consonance. it would encourage a more dense form of communication. good job out of them. 97% discount. macy's accidentally offering that big discount on a necklace. a $1500 necklace for $47. a pretty good by. customers came flocking into the store before macy's realized they made a huge mistake.

it was supposed to be $479. they left out a digit. to pay or not to pay. it looked like that was a question for this guy. and with jail many times for invading taxes. a report called shakespeare a ruthless businessman that warded grain during a time of famine. who knew. then we have michael steinberg's arrest all day. we will see what this may mean for his boss, steve cohen. we will talk about coming up. north korean leader says he can get the countries economy back on track despite sanctions. we will see.

that is coming up. ♪

connell: we continue on market now. you are watching tesla. nicole: we have a couple names worth watching. let's start off with tesla motors. it easily exceeded the analysts targets. it is up almost 22%. what a day. certainly cheering and loving this. wanted to take a look at ebay. jpmorgan raised its price target to $64 up from $56. talking about the company's strength and retail innovation.

ebay gave its own production pertaining to revenue growth going forward. they were pretty aggressive and people are loving that. connell: it is time to make some money with charles payne. pretty provocative statements. here is a little bit more of mr. stockman. >> the entire machinery of wall street is medicated, driven by fed policy. the interest rate is not a real free market. it is entirely medicated. all of them are set by the fed. all of the fast money traders are trading against the fed. we are in a mother of all bond

crisis. connell: eventually, a big bubble burst and we all come crashing down. is he crazy? dad on? somewhere in between? charles: i do not disagree that on a day to day basis that trading can under inflate or over and play. my problem is they have existed for a long time. no one is in the market because you scared the hell out of them. what is your game plan? if you keep scaring people, you have to take the responsibility on the other end. if that feller, these same great

companies, their stocks may go down. where is the responsibility aspect of it? connell: when it first, there will be no new round of bailouts like the ones thinks that in 2008. instead, america will decide into an era of zero-sum austerity and virulent political conflict, establishing even today's feeble remnants of economic growth. charles: if i am reading him

clearly, we should take the pain when the pain comes. we should not dedicated. every landing has to be a soft landing. there is no such thing as a hard landing. by the way, i do not see the fed money in the market just yet. it is not coming from china anymore. it is not coming from japan anymore. i just think when you say that every single stock is overvalued, overinflated and people should just hide in the corner somewhere, i just do not like that. connell: charles thinks david stockman is a little over-the-top. charles: a little. that is how you make it these days. connell: and lot of people are talking about it.

more on the arrest of the sac capital trader michael steinberg and what that means for his boss, steve cohen. that is coming up. batter up. it is opening day and bagel. mlb got things started with a late-night game in houston. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoall of these years. ♪

>> at 24 minutes past the hour, i am lauren greene with your fox news minute. prosecutors want james holmes prosecuted with the death penalty. he was charged with multiple counts of murder and attempted murder for the july 20 assault on the midnight screening of "the dark knight rises." opening day of baseball season. there is joy in houston. they houston astros beat the texas rangers eight-two last night. followed being blamed for a massive chain reaction pileup.

three people are dead and and a dozen hospitalized. those are your headlines. connell: thank you very much. steve cohen. a huge story on friday. elizabeth macdonald joins us. i guess the question is steve cohen next? liz: we are hearing that he is the subject. he has now been charged with any civil cases so far. what we are hearing this hour is there is an intense focus on the e-mails that were exchanged and the firm. take a look at these e-mails. this came within days of the

earnings reports. i have a second hand read someone at the company. be extra sensitive with the info. please keep the dell stuff especially on the down low. yes, normally we would never divulge data like this. please be discreet. he was talking to steve cohen about dell earlier today. nine current and former executives at sac capital being connected to insider trading. for our cooperating. we do not know if there will be any charges. when you take a look at what the f ti is saying about steinberg, steinberg was that the center of

an elite criminal club were cheating and co-option on corruption was encouraged. back to you. connell: you. north korea's leader says he will build up that economy and also the nuclear program. the latest on the tube between north korea and the united states. let's take a look at some of the winners today. the s&p 500. ♪

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connell: we're back on "markets now." about to talk about korea's leader who says he can build the economy and have a war. southwest airlines making moves that suggest it could be adding bag fees and former reagan economic adviser has everybody talking today. very pessimistic view of our economy and the market and the feds and everything else. more reaction to that is also straight ahead. but right now let's go back to nicole before we get to brett at the stock exchange with stocks now. a quick look at silver. >> that's right. you're talking about a big stock mover today on a big piece of news. i'll explain in a moment. shares are jumping big time. up about 21%. it had been up over 40% earlier

today and all of this is on the news they've signed a deal in order to sell off 25% of a gas unit there in texas. so the deal is valued at roughly $485 million. it's to a subsidiary of tokyo gas so with this, we're seeing the stock move in a big way. right now it's at $2.71 a share. it traded as high as $3.17 so big time mover here in the energy world. back to you. connell: and back to you in a few minutes at the exchange. after threatening last week that attack of the united states, now north korea's leader is saying nuclear bomb building and economics are on the move. u.s. is sending fighter jets to south korea and the tension is building and building. how serious from people you are talking to, how serious is the

u.s. taking what he's saying? >> good morning. i think they're taking it far more seriously than they did in the past with some of the rhetoric and rattling that was coming out of north korea. this has a different tone, a different tenor, more specificity from the new leader and you're seeing some action from the u.s. sending, as you mentioned, f 22 stealth fighter jets to south korea. there's already b 2 bombers and b 52 bombers taking part in military training exercises there. that has been called by north korea a provocation by the u.s. and this rhetoric is going back and forth. the problem is that it has increased, not decreased. usually the north does this. they sabre rattle and then do a deal for food. this doesn't seem like it's lining up that way. >> that's the economic point we started with. let's scare everybody and at the end, we'll get some aid from

foreign governments, including the united states to help our people and it's the only way they seem to get what they need over there but what about this? statement that i mentioned at the top from the idea of building the economy and also building up the nuclear weapons arsenal. is there an opening somewhere for the united states to go at that, politically, diplomatically or whatever the case may be? >> sure. and the lynch pin always, with north korea, is china. china and the negotiations, the trade that goes on between the two countries is key to solving all of this. china is calling for calm as is russia today because, frankly, the more the rhetoric comes out, the more people leave north korea in droves and china doesn't want those refugees coming across the border into china. they're already dealing with massive issues of the population there going from rural to urban so they're very engaged in north

korea. so the u.s., in order to get some leverage on north korea, always has to operate through china and that has been a difficult back and forth. >> china will operate its own as it has, in its own self interest and we doen know whether we can trust the chinese, right? to some extent. that's a tough position for the u.s. to be in. >> exactly. and the question is how seriously do you take these threats? how realistic are the threats? technology has increased. when i covered the pentagon for five years, all the strategists would say the ones that we are most surprised by are the ones that we take our eyes off just for a little while. the dictators that we don't think are the big deals. i think they're taking this seriously now. >> just when you say them as a joke with the rodman stuff and everything else, you don't want to lull yourself to sleep with that. this does seem more serious than in the past.

thank you. >> okay. connell: you can watch him on the fox news channel at 6:00 p.m., special report. don't miss it. bag fees will be coming up in terms of how the bags fly free. perhaps not much longer with that. southwest launching a new ad campaign, makes no mention of this very popular feature for people flying with southwest. passengers first two checked bags fly free. uh-oh. is it over? the commercials began running during the ncaa tournament and now many people speculating free bags could be a thing of the past. a southwest spokesperson saying the ads are about showcasing who southwest is now and have no plans to charge for bags in the future. it's just not mentioned in the ad. we'll see. southwest airlines stock price is down today by 19 cents there. $13.29. this former reagan adviser calling for the fed to blow up the market, the economy and everything else. a flood of phony money, all this kind of language. everybody is talking about it

today and we'll continue. more coming up on that just ahead in terms of whether he's on to something or whether it's over the top and facebook. facebook is in the news because apparently it wants its own phone. is it coming this week? we'll have a report on that and we'll also keep an eye on interest rates. yield is still so low. look at 10-year treasuries. we'll be right back. much more "markets now" straight ahead.

>> i have your fox business brief. a survey shows u.s. manufacturing activity expanded, though more slow until march than in february. held back by weaker growth in production and new orders so one bright sign in the report was that factories hired at a faster pace. the live tv streaming service has held partnership discussions with tv service producers, including at&t and dish network. the startup three local tv broadcast signals over the web to a tiny antenna users rent for a fee. it's only available in new york city now but it's planning to launch in 21 other markets this year. para mount g.i. joe retaliation starred the movies over the weekend. it brought in $41.2 million in ticket sales. that's the latest from the fox

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connell: and this former reagan budget director is getting a lot of attention today just blasting the federal reserve and ben bernanke. doing so last hour, appearing on "varney and company." here is part of that. >> what i do know is that this market lives and dies by the last word of the fed and the people at the fed have no clue what they're doing. ben bernanke is the most dangerous man ever to hold high financial office in the history of the united states. connell: all right. so john brown joins us now and i would think we've had a lot of different views as we like to have on the show throughout the hour, charles payne thinks that stockman is over the top and others say he might be on to something. tell us.

>> i have great sympathy for what he's saying and agree largely with what he's saying with one major exception and that is, he says that the people at the top of the fed there know what they're doing. i know they know very well what they're doing. connell: what do you mean by that? >> i think the fed is working and has been working for politicians for a long time. despite that he says it's not not working for them and globalist competition. if you look at what's happened, the 98% reduction in the value of the dollar since the fed opened doors in 1914 to today is an amazing thing. the 26% depreciation in the dollar in the last 10 years and so-called free market is manipulated. they openly admit manipulating interest rates in the bond markets, the stock markets, they opened short positions in precious metals all to distort the truth, publishing inflation figures as low as 2%.

who believes that? you talk to independent economists like john williams, it's 5% to 9% which means if you're getting half a percent in a bank government, you're losing 4 1/2%. connell: we've had this discussion in the last 4 1/2 years and we could continue on it but i'm more interested as we look at 10-year notes, i'm more interested in what you think will happen. in other words, how does it end? stockman predicts a big crash. charles payne is saying over time, something like that may happen but when? when? it's almost useless to predict something that may happen in 30 years versus two years, that kind of thing. how do you think this all ends? >> it's awfully difficult to tell when. it's like a person with the hairline sights on you with the gun. when does he pull the trigger? the point is when he does pull it, you're dead. it's like pushing a glass of water to the edge of the table.

everybody says it's looking dangerous and then sudden it will happens, bang. connell: it will crash just like what stockman is saying? >> i think it's big time crash. so bad that, you know, the banks, for example, even in america who very far better ratios than the ones in europe are stuffed full of treasury stock and if interest rates value, they'll banks can't tolerate that. banking deposits in america, corporate and individuals are $10 trillion. fdic only has a quarter of 1% of that for cover so i could see bank -- long bank holidays and market closures the situation is so bad if interest rates start to rise, it will be catastrophic. connell: we've been -- as i said, we've been talking about this for awhile and david stockman added to it today. we'll talk to you soon, okay? >> i'm sorry there's no better

news. connell: i'm used to it up to this point. we like several different views. let's go to nicole now with some top movers. >> he's always a great guest. take a look here as the dow is down about 30 points right now. i want to look at names on the move. lots of little stories going on with each particular company. most obvious is american greetings which may go private and that's up 12%. game stop that came out with earnings that beat the streets, good news there, up 5 1/2%. at&t offering deals on the new kindle if you have the old kindle. that's available on april 5. ruby tuesday, when you think of casual, making positive comments and seeing the stock going to the upside and seeing better margins. back to you. connell: now we'll talk about facebook because it may be changing status in the mobile market. we have the details on another

story a lot of people are talking about today. >> they sure are. and obvious question to ask is why in the world would facebook want to play in this sandbox when there are so many other competitors? the list goes on and on and a good compelling reason is it just got a captive and large audience. a billion users and according to a study from the i.b.c. and facebook last week, mobile users are checking their facebook status 14 times a day on their phone most within waking up in 15 minutes. so what they're trying to do is own the entire experience, growth experience of being in the smart phone market and then the apps and then the mobile money that goes along with it. they're holding a big event later on this week at their headquarters on thursday and here is sort of the rumored status of what we think could be in the phone based on rumored reports right now. we think that the phone is going to be made by h.p.c.. this is like the number four and number five player in the smart phone business. it will have a customized

version of the android, a customized operating system, a 4.3 inch screen, actually, and 16 gigs of storage and a rear cam that's actually weaker than the iphone at five megapixels, 1.4 megapixel front camera and then if you have wi-fi, we believe we'll be able to make free calls and text messages using the messenger. overall, connell, and i think you would a grow, these features kind of just umph. nothing great. everything will change when the company does and if it does come out with the phone on thursday but what they're going to have to do is convince users that just opening their app isn't enough. they'll need the full facebook experience from start to finish. not going to be an easy value proposition to make out there. connell: that's what i was thinking. we have an app on the phones, whether it's android or iphone now for facebook. why do we need this? >> it's all about int grigs so

they want to get these hard core users when you open your phone, you get facebook. when you take a photo, you go straight to insta gram. we may not be the target audience but there are others out there. connell: you're right about that. now we'll talk more about markets coming up on "markets now" but also basketball. michigan heading back to the final four for the first time in 20 years. we'll talk about wolverines and the other teams that made it but first some winners on the nasdaq today. we'll be right back. more "markets now" straight ahead. it's monday.

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connell: back to markets. a quick roundup for you. elite eight games head oef the weekend. a lot of people's brackets are a mess. we're up 13-0. never looked back. 179-59. wolverines have not been to the final four since 1993. fab five days. but they're back taking on syracuse saturday night. in the second game of the day, louisville able to overcome kevin ware's gruesome leg injury and all the emotion attached to it in the second half. rick and everybody else wiping tears away after the injury. they beat duke easily 85-63. ware was just jumping to try to block a shot and his leg gave out. one of the worst things you'll see on tv but before he left the floor on a stretcher, he told his teammates not to worry about him. you can see them holding hands

there. just win the game and they did. louisville will play wichita state in the time four. that will be the first game next saturday. back to business here. it's a big day in california for stockton. a federal judge is just two hours away from deciding whether we will see the most popular city ever to go into bankruptcy in the united states. could set a precedent, right? this ruling? >> right, connell. potentially it could because it could test whether federal bankruptcy law trumps california law that says debt to the state pension fund must be honored. stockton wants to pay less than it owes on a loan it took out in 2007. money that it used to pay the california public employees retirement system. those mention obligations around $900 million represent the city's biggest debt. but during a three-day hearing in federal court in sacramento last week, creditors argued, it's unfair for them to lose money while the retirement fund

negotiated back when times were good, remains untouched. again, this is the first bankruptcy case to challenge state pension law. most experts predict the judge will allow them to enter into bankruptcy and they expect the ruling to be appealed. connell: i'm sure of that. it's a big one, as you said. what are they saying in stockton? no other way? this it how it has to be? >> no other way. and remember, the city filed for bankruptcy last summer and officials say if they cut programs and services any more, it will risk the health and safety of the people who live there. after years of good times, really a perfect storm in stockton. it was hit hard by the housing bust, unfunded pension liabilities and bad management. crime is a problem. police cars like this one everywhere right now. also have a very high unemployment there. city officials claim they've cut services and budgets to the bone but a large list of creditors including bobbnd insurers say t

city could have done more to avoid chapter nine. if the judge grnts bankruptcy, there will be more obligations to pay back a debt plan. we could see this case ends up before the u.s. supreme court. >> we'll stay on top of this stockton, california situation. meantime, the former reagan adviser david stockman is the talk of the town today because he's called out ben bernanke and the federal reserve for blowing up the market potentially with a flood of phony money as he put it. so we'll have more on all of that coming up and whether stockman is on to something or just over the top with all of this and then the arrest of michael steinberg, what it all means for steve coh cohen chery will be here after a quick break. everyone's retirement dream is different;

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cheryl: coming up on noon eastern time, "markets now." former reagan economic adviser david stockman taking a pessimistic view of our economy. he says the fed is blowing up the markets with phony money. fox business was the only business network to bring you the arrest of the s.a.t. executive on friday. today we'll show you just what this means for s.a.t.'s chief steve cohen. big business and immigration. compromise is forming quickly but some say the president need to jump on board. and shakespeare not in love with taxes. new findings show he wasn't a big fan of paying his fair share. join the club, william. it is the top of the hour. stocks every 15 minutes and it is the first trading day of the second quarter.

nicole on the floor of the new york stock exchange. the markets have a bit of volatility this morning. >> that's right. economic reports, some better than others and also abroad, not only here at home but also china and the like. we started off the day in the green. right now talk about what we're seeing on the boards. the dow, nasdaq and s&p 500 all with down arrows. nasdaq down 3/4 of 1%. tech heavy nasdaq pulling back. i.s.m. number and that banner flashed low. it came in less than expected of 54 so that also is a little bit of a disappointment. major market averages, dow and s&p 500 actually hit intra day highs. the s&p 500 not too far off of the intra day record high but it set a multi year intra day high today and they both pulled back. all three indices to the down side now. >> we'll see you 14 minutes from now. the "wall street journal" is reporting today that banks are

closing branchs across this country. take a look at this. after years of growth, major banks shutting doors on over 2,000 branchs in 2012 putting bank branch totals at their lowest level since 2007. capital cofounder and president noins me now. you've come on this show several times talking about the four pillars. two of your pillars are mentioned in the journal today. they're shutting down branchs. >> and it gives me a little more enthusiasm for the sector. this is a complete reversal of strat did i when banks put a branch on every corner. they were courting new customers who they were hoping would be eager to borrow by putting brick and mortar but the fact is they were not running business efficiently and if a branch isn't profitable, it will get shut. cheryl: branch of america, 193 branchs. >> i think they'll focus on areas that are profitable, where

they can achieve a certain level of deposits and significantly is the move to on line banking, whether at home on your p.c. or mobile device. over 53% of transactions now are done on devices and done on line. they just don't need the brick and mortar so the reality is there will be unintended consequences. communities will get hurt. jobs will be lost. the banks will operate now as a company that if they're making money, they have to shut the doors. cheryl: u.s. bank, bank of america are the biggest names on this one but the regional banks as well, that's been one of the things that actually propelled that sector through the last, i would say, 2008 and 2009. people were afraid of the big banks. they wanted that personal connection. >> i agree and there's a role for the community and the regional banks but the reality is people are not conducting their business in this store. if a branch is not profitable, then the bank has to reconsider whether or not they want to keep that store occupy.

what we're seeing is we would love to have faith in the community bank but if you're not going to show up and put your deposits with us, you're going to do your transactions on line, we don't need to keep them there. cheryl: what we've seen is about $$80 billion moving from index funds to etf's just coming off the first quarter. consumer staples, hhalth care, financials, i'm curious what you're seeing for the second quarter. there has to be some risk. you always warned me about history repeating itself. i don't want to see april repeat itself from the last three years. >> it is a little daunting as we head intu april. there's been a day in april the last three years where there's been a turning point and actually drops, looking like 10% to 19%. we don't expect that kiid of drop but there are some concerns. we think spending cuts that were part of the sequester are going to start to be felt. we think the tax increase that took place, both actually show some levels of fiscal

responsibility but it will start hitting consumers in the wallet and hit the economy. we're weary there might be too much complacency so we are a little cautious now heading into a time when the parties don't go as well, you don't want to stick around too well. cheryl: you talk about caution. david stockman was on "varney and company." he wrote a piece, incredibly, incredibly pessimistic about the u.s. economy and railed against ben bernanke. i want to play a sound bite and get your reaction on the other side. >> entire wall street is medicated, driven by fed policy. the interest rate isn't a real free market interest rate anymore. three-year rate, 10-year rate, all of them are set against the fed. fast money traders are trading against the fed.

they will sell the bond as fast as they thought it. the stock market trades entirely on whether there's more juice coming from the fed and whether the smoke signals are real. cheryl: does he have a point? >> definitely has a point. we've talked numerous times on your show that the most important driver of the equity market's performance and the overall market performance has been the easy monetary policies of the fed and the stimulus that it can provide. that is true and people are watching to see what signs of exit and what signs of change but the reality is i think that story is half baked, meaning so the money went in. the question now is how is it going to exit? i think he called chairman ben bernanke the worst chairman of all time. cheryl: he also said to go into cash, by the way. >> now it's going to be about the exit and i think the other thing i would challenge is, and what was the alternative? when fed policy is hand grenades and horseshoes, you're not playing darts, not rifles, you're throwing money at a problem to stop what people

would have said a greater calamity if it wasn't done. now we're dissecting it but we're right. the markets are propped up by the feds and now how are they going to rewind and exit it? cheryl: we need to be concerned about the jobs markets that we'll be getting out later on this week and that's on your radar later this week. we'll have to bring you on to get your reaction to that. thank you very much. new york capital. speaking of what we're getting on friday, that's the big jobs report. p.w.c.'s real estate adviser practice leader says office jobs are back and that's going to raise rent because there's no supply that's been added. i'm cure yous what sectors the jobs are going to come from. >> professional services, firms like p.w.c. and other service industries as well as those industries that support the service industries. so engineering, architecture and the home building industry will also be a big driver. cheryl: i want to go bacc to some of the -- if you look at

the services sector, for instance, just to hone in on that particular sector, that's where we saw the job growth come back. if you're looking at real estate spaces, i would think you need other, more high paying sectors to come back. we're not seeing that right now. >> but office buildings around just sixth avenue and manhattan. you have to look at suburban office rents that are relatively low. cheryl: that's still not mcdonalds, though. it's not a cleaning service. >> fair enough but i think there's enough office jobs in technology and in the sciences and in health care that are actually occupying office space or office like space across the country. cheryl: one of your points is job growth is pushing demand. if that's true, where are we seeing the demand pack up? commercial services? san francisco, new york, manhattan? take new york out of that but san francisco and boston. these are the big cities you're really looking at.

seattle, houston? >> right. so you have energy, technology, those are the cities. diverse employment bases like new york, like boston but also phoenix, arizona, denver, colorado. these are markets that haven't added new supply and because industries are going to there, there's a lower cost work environment. also the housing industry and the construction industry has been strong there. look in the last decade, what drove demand in the office sector, in most suburban markets was the housing and construction industry that's coming back. cheryl: one more is the hotel industry, the hotel sector. it's revenue per room that's like the industry bellweather. you're saying that is going to pick up and that's going to help commercial real estate. >> right. p.w.c. forecasts on a regular basis. the forecast is 5.9%. considerably higher than g.d.p. growth, considerably higher than inflation. values didn't come back the way

they did in other commercial real estate so there's still room for value in lodging and that's driven by year after year of par growth. cheryl: there's so many other ways we can play off commercial real estate. >> i'll have to come back. cheryl: thanks very much. it was a story you could only see friday on the fox business network. the federal noose tightening around steve cohen. one of his top lieutenants at s.e.c. capital charged with criminal insider training. liz mcdonald is joining me and i'm curious how much trouble overall we think steve cohen could be in here. >> people close to the matter are saying what's an issue are emails. there's also talk about whether or not the manhattan u.s. attorney is using wiretaps in this case. let's get to these emails that came from a former tech analyst who is cooperating with the authorities in this investigation into insider trading.

look at this email that reads from the former tech analyst. he's saying i have a second hand read from someone at the company, dell. these emails were sent to michael steinberg and said be extra sensitive with the info and keep the dell stuff on the down low. look at more emails coming up of the investigation. these are from michael steinberg. and again, these emails were sent in and around august of 2008, in and around dell earnings report. normally we would never divulge data like this so please be discreet. thanks. another was talking to steve h cohen about dell earlier today. what's going on is the federal authorities are trying to get michael sneinberg to flip, to provide testimony and evidence against steve cohen. he does face at least 20 years in prison. he faces four counts of

conspiracy fraud and one count of conspiracy. earlier another executive at s.a.t. capital did not flip. he has stuck fast. he's saying he's not guilty. michael steinberg saying he's not guilty. steve cohen has not been charged but more and more emails are coming out and providing some damning evidence against the s.a.t. executives. cheryl: still tough to prove, even if you're steve cohen. >> that's right. cheryl: thank you very much, liz. well, despite rising commodity costs, california pizza kitchen enough to bring changes to their menu. one year after the company went private, i'm sitting down with their c.e.o. to talk casual dining. the fate of stockton, california filing for bankruptcy. looking to default on a $165 million pension obligation.

that story is in the markets today. we want to take a look at the oil contract. we're getting closer not today but still, edging closer overall to the $100 a barrel mark. you can see it by summer. we shall see. this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank.

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cheryl: 15 past the hour. stocks now every 15 minutes and s&p 500 is raising the rating on whirlpool. what have you got? >> a lot to take a look at here. first start with the major averages. all down arrows as we speak. dow 14,556 but that wasn't before it had an all-time record. 14,605. s&p 500 also hit a multi-year intra day high so that was one to watch. all three have pulled back. we got in the i.s.m. number. that was a disappoint for the 54

estimates at that level. what's interesting is we're seeing down arrows, market averages. so obviously anticipating a little volatility, a little nervousness here in the markets and as you noted, whirlpool. interesting news on whirlpool. the go ahead news is that s&p 500 actually raised rating on whirlpool one notch. some of the things they talked about are stronger housing market, lower cost structure, better economy and that may further strengthen the credit measures and operating results but it's still down 1.25% for whirlpool. cheryl: but still 116 dollars per share. that's impressive. it is time to make money with charles payne. it's all about 3 d and that's all i know. we've been talking about this stuff on the break. >> 3 d is the name of the company and we'll get to the

symbol. it's ddd. you know the 3 d phenomena, though. i really say this is something that's underreported. i just think it's the most exciting thing going on in technology, period. the idea that you can draw a wallet or a purse and go home and actually print it out at home on a printer. we're a long ways from that but this is where we are. cheryl: that is the necessity of that? that's what i don't get about the story. >> you don't get that? well, let's just say you're manufacturing something and you need a screw broken in a factory. do you want to call for the screw to come from china in three weeks or do you want to make your own stuff? the possibilities are endless. cheryl: will the purse look good under my arm or over my shoulder? >> you're the provide sorry you're going to love it either way. obviously the excitement comes before the actual earnings but they are starting to do very well. this company deals with 3-m,

nike and it goes on and on. ultimately they say you can print out a 787. the possibilities for this thing are really endless but again, the hype sometimes gets ahead of the stock. the stock recently made a huge pullback. i like the way it's right now. i think breaking out from here. next move through 30 probably takes it to 30 and i'm looking for it to go to at least $40. cheryl: we'll follow that again. >> please follow up on it. cheryl: we will and then whirlpool which you had some interesting comments on. charles pain, thank you very much. >> see you later. cheryl: cost of i memmigration reform. 11 million illegal aliens out there. next, how they're going to pay for it. look at that.

if you listen to mark six months ago, he told you to buy this. now take a look at the world currencies, how they're fairing against the u.s. dollar.

cheryl: it is 20 past the hour. lauren green does not have any audio but she looked great so we'll have the news headlines from her and if we can, back for you in a moment but first this. congress working to hammer out a deal on immigration reform. after business and labor negotiators reached an agreement on wage issues. peter barnes, i hope he can hear me. he's standing by in washington with the latest on this story. >> that's right. wage and visa issues were the breakthrough in this compromise this weekend, cheryl. touchy issue of lower paid, lower skilled guest workers, labor unions do not want easy

visas for temporary workers and industries like hospitality, restaurants and construction. they want to project jobs and wages, of course. business had been pushing for 400,000 guest worker visas each year but negotiations between the a.f.l./c.i.o. and the chambers of congress decided with 20,000 more visas rising to 75,000 a year in year four and after that a maximum 2600,000 a year under a complex formula. the chamber said, quote, this is a structure we can move forward with. the deal allows a bipartisan group of eight senators to finalize legislation that would provide a path to citizenship for the 11 million illegal aliens. one of the members supports all of that despite attack ads from anti-reform groups back home. >> it's become ground zero. if you can sell it here, you can

still it anywhere and opponents of immigration reform see this as a test case. back in the trying to shoot a shot across my belt as a warning to others, it won't work this time. >> another republican member of the group, conservative rubio of florida, a key member said i'm encouraged by all of this progress. however, reports that the group of eight senators have reached an agreement on a legislative proposal are premature. there's significant, certifiable improvements in border security and the white house said it is encouraged by the progress. back to you. cheryl: i would think when you get the u.s. chamber behind legislation like this, and immigration reform is something we've been debating for decades now, do you think that that is going to actually sway more on the republican side to play ball with the democrats and actually get something through this time? >> absolutely. and i think when you get

agreement between the afl/cio and the u.s. chamber of commerce, it's significant for every party. >> compromise for once. thank you very much for jumping in. peter barnes live out of washington. i want -- immigration reform, are we closer to getting everything done? we'll talk about it at 1:00 eastern. do not miss that. a little over six months ago, mark jakim said buy ebay. the company expects revenue and profits to get even better. we have picks from mark coming up. macy's how shoppers made out like bandits. as we go to break -- maybe they did. take a look at the winners on the s&p 500. a few names that you know very, very well. game stop leading the way. we'll be right back.

cheryl: 30 past the hour, stocks every 15 minutes, america greetings hitting a new high. nicole. nicole: we always hear about the founding families who found their business. this family has ties to american greetings dating back 100 years and now they have moved forward to take the company private. up about 12%. they reached a deal to buy the company. the value of the deal is around

$878 million including debt and settlements of stock options. we are seeing the stock jumping up about 12%, now hit an annual high today. it had traded higher. look at the major market averages. thank you. cheryl: thank you very much. there are two sectors that led the way for investors and the consumer staples sector. the ceo. we're looking at these two sectors over the last five going on six years. the stock is up 46% year-over-year. so i am curious, do you still like ebay right now? >> it was upgraded by a couple

of analysts and in my heart i think ebay is a great stock over the next five years face electronic payments. cheryl: does that go back the overall staples? are you believing the consumer? they have consumer confidence that was a little worry some. >> i think they ebay-paypal story is more about mobile then it is the consumer. i think people are switching from the conventional rock store purchases to mobile purchases and ebay is reflecting that. cheryl: you also like tesera. i have a feeling how you feeling about that stock now. i know you evaluate the gauge of the stock. speak of the stock is out ahead of itself.

the stocks have real legs, lot of moment i'm and the trends are progressing. cheryl: when you are here in july of last year, talk about mcdonald's and jack-in-the-box. you are right about this. he said we should go into the company like jack-in-the-box. again, wouldn't call that stable, discretionary, but what do you think about these two names now? >> mcdonald's has rallied to a point i wouldn't want to own this stock. jack-in-the-box is knocking the cover off the ball. mcdonald's up about 10%, jack-in-the-box about 25%. neutral from mcdonald's. cheryl: we will be getting first-quarter earnings per share numbers. i know you have a downrange

right now up to 15,000. first-quarter earnings, major american companies, do you think we will have a little bit of an issue with sequestration and fiscal cliff marks? >> sequestration will really affect the market in the second quarter. analysts have been very conservative. the targets have gone up from 65 to an occasional writer of 74. analysts playing catch-up, raising their price targets on stocks to catch up with the earnings picture and the market. cheryl: one of your picks, you talk about lululemon, amazon. thank you very much. we will continue to watch your ppcks. >> thank you, cheryl.

cheryl: and 97% discount, that is what macy's was accidentally offering on a necklace. the company sent out a catalog offering $1500 necklace for $47. customers flocked in to the store and were able to buy the necklaces before the retailers realized they made a mistake. take a look at the stocks, $41.48 for macy's. coming up, i will go one-on-one with california pizza kitchen ceo. how the landscape has changed and taking a pizza chain private that was just a year ago. and going after the $8 billion dairy industry. taking a look at the california cows in my west coast minutes. and a look at the 10-year treasury. we will be right back.

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we help you shine every day of the week. tracy: i am tracy byrnes with your fox business brief. u.s. construction spending rose in january helped in that number is 2.2% in home construction. the highest level in more than four years.

mortgage rates remaining near record lows, more americans are buying homes. u.s. manufacturing activity expanded more slowly in march than february held back by weaker growth and new orders. one great sign and report its factories hired at a faster pace. your times reports the directors of the nation's biggest banks continues to rise. at an example, the data from that says the average pay for director goldman sachs in 2011 jumped more than 50% from 2008 to nearly $489,000. that is the latest from the fox business network giving you the power to prosper.

cheryl: california pizza kitchen is reclaiming the pizza authority and my next guest is here to tell us how they're doing it. you know, you are the ceo of texas roadhouse and we talked

about the incredible revenue growth you build over texas roadhouse. what are your plans for california pizza kitchen? >> we will take it a little bit slower than where texas roadhouse was. we have some work to do over the last five or six years, first we want to start looking at innovating again and being creative. as we do that, we will start to grow. cheryl: you are one of those restaurant chains where you can compete with fast casual, you can compete against tgi friday's and red lobster but also all of the pizza chains. pizza hut, papa john's, domino's, yum brands, all of these, more stable names versus the california pizza which is a little bit more high-end. so how do you compete against those, if you will?

>> would look at it as we are in a casual restaurant phase, it is a full service experience, a dining experience. we offer many more things besides pizza. we end up competing really for where we are with 75% of locations in the mall. cheryl: and you have a big freezer component as well, so i wonder how those salescommission seen any growth coming up in the next year. >> we're still number one in the premium category. it is very competitive. we are pleased where we are and we think we will have slight growth. cheryl: you went private, california pizza kitchen went private a year ago and was a lot of companies choosing to go private. for different reasons. how has it gone now that you are

at the one-year mark of that transition? >> we are very pleased where we are. we have a lot of things we're working on internally, and this year 2013 will be the year we show our guests some of the new things and exciting things we have come in. some of that is really going back to our basis of california style pizza. we put it on the map. we're coming up with a spicy barbecue pizza with salad. or a lobster pizza. we recently brussels prose with bacon and caramelized onion. really trying to take a twist on what flavors california style. as we do that, we think it will bode well for our future. cheryl: you are also doing craft beers, wine, pushing the full experience meal. at the same time, you like everyone else has to deal with commodity costs. if you look at corn wheat, corn

prices, all those prices will affect you. how do you have against the commodity price right now? >> hedging is something you have to look at, where the markets are headed and where you think they're headed. we estimate 60% of our product. we don't anticipate a tremendous amount overall inflation, in a 3% area this year, so we think it is manageable. given some of the offerings that we will be having, we can plan accordingly. cheryl: one of the things we have seen this with obamacare and the health care costs changing particularly hitting the restaurants. how do you plan to handle that? >> certainly the affordable health care act is challenging for the restaurant space. we are preparing for it, however we are not doing what some of

the other folks are doing. there is a minimal requirement of 30 hours and we will not manage below 30 hours. we want to provide them the opportunity to get insurance where possible. it will come at a cost, however in the challenge we have to deal with, but so will everybody else. cheryl: g.j. hart, it is good to see you over at california pizza kitchen after a successful run at texas roadhouse. >> thank you for having me. cheryl: stocks now, you have nicole taking a look at the financials. nicole: taking a look at the financials. they can often lead one way or another. you can take a look, bank of america, down one and a 3rd%, while jpmorgan has an up arrow about a half of a percent. you are seeing down arrows.

take a look at tesla. very interesting. the luxury electric carmaker. looks like quarterly profit is on the way. going public in 2010, the reported losses every single quarter. he talked very positively about the company. the stock is up 18% and hitting a new high. cheryl: i expect charles paynter run in telling me i told you so. thanks, nicole. let's head to the pits of the cme. phil flynn watching crude. phil: if you want to what is happening in the manufacturing sector, disappointing numbers took away some of the bullish momentum. that is down today. the bigger news today is gasoline prices.

people not realize this, but last month is the first time in 10 years gasoline prices have actually gone down in the month of march. maybe because they went up so much in february, but it is showing a sign we have seen the highs of gasoline prices may be for the year. they are saying the high that we saw early april maybe the high for the year, let's hope they are right because that would be a big move to the economy. they have been up and down today. they are back up a little bit today, but heating oil prices with the unending winter is colder than normal temperatures. up $0.2.6. they're out of sync in the stock market for the first time in 2008. i don't know if that is a sign things are back to normal or the world is coming to an end. whatever it is, today is a good day for the gasoline fire. cheryl: phil flynn, thank you.

time for your west coast minutes. kb home's moving back to profitability. the fifth largest homebuilder in the nation making a profit after six years of losses. los angeles-based homebuilder watched its stock triple over the past year and has projects in states like arizona, colorado, nevada and mexico. there is the stock for you right now down $0.53. 21.24. despite a price target boost from jpmorgan, california dairy owners are being courted by no less than a dozen other states to move their operations elsewhere. the high-speed cost and low milk prices have been sweeping margins. the industry accounts for 21% of the nations milk production. and a newly opened nevada wind farm could be hit with a $200,000 fine over the death of one golden eagle. the farm is worth $225 million, the owners based in

san francisco didn't have a permit allowing any accidental deaths to go unpunished. golden bald eagles are protected under nevada law. if you didn't get enough west coast news, pension fund obligations crippling california. the judge's ruling next. and theand a look at some of the winners over on the nasdaq. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone w's lived well into their 90s. and that's a great thing. but even though we're living longer,

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cheryl: a california judge minutes away from deciding whether the city of stockton will enter bankruptcy. if it happens it will be the most populous city in the united states ever to enter bankruptcy. fox news live in san francisco with the latest. >> cheryl, this could test if federal bankruptcy law trumps california law that says cities have to honor their debts to the state pension fund. stockton once reduced amount it pays back from $155 million loan he took out a 2007, money it used to pay helpers two calpers. millions represents the city's biggest debt. stockton faces a budget shortfall last summer when it filed for bankruptcy. it resulted in the housing bust and soaring pension costs after cutting a quarter of the

services to the bone, they argued bankruptcy is their only option. during a three-day hearing in federal court last week, bond insurers to guarantee the big loan argued it is unfair to lose money while the retirement fund, which when times were good, they committed to make whole remained untouched. along with the creditors, they do not negotiate good faith and could have raised taxes. regardless of the ruling, the legacy of stockton and other cash-strapped cities like san bernardino and detroit will be tough down reevaluation of municipal finance. >> i think what we will see if local governments looking more carefully at the kinds of borrowings they will make and how they can reasonably expect to pay those borrowings off. >> most experts predict the judge will allow stockton to enter into bankruptcy, which we will know very soon. they expect the ruling will be appealed, perhaps all the way to the u.s. supreme court.

cheryl: that is very possible. thank you. tax pain continues. to pay or not to pay. that was the question for william shakespeare. he was threatened with jail several times for evading tax payments. calling him a ruthless businessman during a time of famine, exploited vulnerable and wrote plays about their struggles to entertain them. under promise and over deliver? we're joined with washington's first-quarter earning growth will wow the streets. plus, he will be here, lou dobbs on the immigration debate. clearing a major hurdle. marco rubio says not so fast. coming up when "markets now" continues after a quick break.

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>> soy couple of things, want to point out if you look at the dow, down almost 16 points right now, so this morning starting positive, the data took the market lower, a volatile kickoff for trading after what was a phenomenal quarter one with the records for the dow and s&p. cannot argue with that. lori: david stockman is telling everybody to run for the exits. we are going to continue the discussion here on "markets now." adam: i am adam shapiro. lori: i am lori rothman. the dow a little bit lower after climbing 11% since the beginning of the year. as earnings season kicks off, look for earnings growth. surprised the street in a major way. next. adam: ben bernanke dangerous